Mobile Money: The Foundation for all Industries in Cash-Based Economies mPay Connect, Inc.

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agenda

1. background 2. why mobile money? 3. uses in the field

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background

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mPay Connect Consulting

Global Team for Mobile Financial Services
mPay Connect Global Affiliate Team
Canada: Led Product Development for MNO Consortium to launch mobile payments system Canada: Architected and oversaw the development of the NFC/Mobile commerce infrastructure in Canada together with Canadian members of the GSM Association, CDMA carriers, FIs, associations and processors North America: Led PayPal Mobile Business Development for North America

Mexico: Chief Jamaica: Developed interlocutor for Regulatory policy PayPal on branchless recommendations for payments with the Central Bank. government of Mexico Latin America: Chief global regulatory negotiator for

China: Chief interlocutor for PayPal on branchless Europe: Developed global market strategy payments with the Peoples Bank of China for Fortune 500 firm for mobile money Bangladesh: Developed bKash Business Plan (JV with BRAC). Awarded $10 million. Nigeria: Worked with client banks on interpreting Central Bank of India: For leading FI, Asia: Developed online payments Nigeria mobile regulations and created Mobile Airtime AML standards with FATF, which provided consortium currency were incorporated in 2009 typology, recommendations recommendation and stored value and branchless banking

cross boarder airtime for payments in Singapore and other Kenya: Advisor to processing platform countries in Asia startup mobile PayPal, with responsibility for Central Banks and other money platform Australia: Assisted local country national regulators, World Bank, and Inter-American Kopo Kopo managers in launching PayPal Development Bank; specific expertise in financial South Africa: Launched branchless Mobile services licensing in the PRC, and Latin America banking services via USSD/WAP/SMS

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mPay Connect Consulting

Join our Linked In Group: Mobile Payments Series mPay Connect
Representative Clients:

World Economic Forum United Nations Foundation (mHealth Alliance) bKash: Bangladesh Joint Venture between BRAC and Money in Motion Jamaican Central Bank Inter-American Development Bank 3 of the 4 largest banks in the U.S. Global mobile operators

Publications: World Economic Forum, The mHealth Alliance, Amplifying the Impact: Examining the Intersections between Mobile Health and Mobile Money, (January 2011) for Davos Annual Summit. Innovations Magazine (MIT Press) (June 2011) on (The) Mobile Money Movement: Catalyst to Jumpstart Emerging Markets Inter-American Development Bank: Addressing Gender Concerns around Mobile Money Access in Jamaica

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why mobile money?

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mobile money = foundation for all industries in cash-dependent markets

mHealth, Off-Grid Energy, Food Security, Disaster Relief

Mobile Financial Services

salary, payments, savings, insurance, credit

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mobile money defined

Using the mobile phone as a channel to conduct payments, account management, and other financial services
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mobile money = (mobile) financial services

Mobile Financial Services

Mobile Payments

Mobile Microfinance Mobile Finance

Mobile Banking Mobile Banking

P2P

C2B

B2B

B/G 2C
Salary disbursements Pensions Rebates

Credit, Savings, Insurance

Disburse, Repay Savings, Insurance Insuran

Transactional
Mobile bill payment Brokerage

Informational
Alerts Account balance & history

Mobile Money Transfer At store Replace cash Domestic or International (proximity payments) in supply chain Mobile remittances Mobile online (e.g. eBay or ringtones) Micropayments (to bill)

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increases financial access

World Economic Pyramid
Banks

500 Mill
*>$20k/yr

2 Billion
*$3260 to $20k/yr
Today

Unbanked, Mobile Opportunity: 1.7 Billion in 2012

Source: CGAP

4 Billion
*<$3260/yr or <$9/day
Source: World Resources Institute
(*Individual Annual Income: 2005 USD Purchasing Power Parity)

2012

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reduces costs of financial services

$ 4.00
Branch

$ 3.75
Live Rep

$ 1.50
IVR

$ .08

Mobile

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Case Study: Kenyas mPesa takes off like Wildfire

Mobile money transfers via SMS

Mobile payment system built using SMS messaging

How mPesa is used:

Send money (Agent) Receive money (Agent) Pay for things (Merchant, Bills, etc.)

Registered Customers
8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 3,367,192

Now 14 million!
7,000,000 (~50% Safaricom base)

2,000,000
1,000,000 0 268,499 July 2007 July 2008 July 2009

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healthcare

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mHealth and MFS are inextricably linked by common building blocks and cross-sector dependencies

Prosperity Wealth Mobile Financial Services

Pay for mHealth

Health

mHealth

Use case for MFS

Policy Concerns Business Elements Infrastructure Users

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Mobile Financial Services

mHealth

Using MFS to spur mHealth e.g. Maternal Continuum of Care

PrePregnancy

WHO-MNCH Continuum of Care

Pregnancy

Birth

Postnatal

Patient Level

Conditional Cash Transfers Prepaid savings accounts Micro-Insurance Payments (ambulatory, health information)

Provider / Service Level

Voucher payments Supply chain Data retrieval / decision support Management services Testing, Labs, Diagnostics

HR / Administrative Level

Salary Disbursements Performance-based Funding Conditional Cash Transfers Expense payouts

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food security

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issue: precarious cycle further exacerbated by lack of financial services

Cant invest Crop Output Down

Less Money

Turn to Sex Work Less Farming

Cant buy food Caretaker Burden Up

Malnutrition/ Illness

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innovations

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Mobile Financial Services: Lease-to-Buy for Off-Grid Energy

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Mobile Vouchers and Micro-Savings for Food and Healthcare

Mobile Vouchers Prepaid Savings with Mobile Top-up

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Mobile Micro-Insurance for Small Holder Farmers

Syngentas Kilimo Salama in Kenya

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Contact us: info@mPayConnect.com

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